Shriveling Shopping Malls

Some blame in on the death of the American shopping mall. This is a factor, but not necessarily the primary culprit, as Charlie Cain explains. 75% of Americans go to malls at least once per month, and large shopping centers drive 50% of all US retail sales. I give Charlie a lot of credit here as he has worked in tea (and was a Starbucks exec), but I’m not convince the numbers work out. How many cups of tea do you need to sell to weekend mall traffic to make a worthwhile profit? Does half of all US retail sales- spread across multiple shopping center locations (and across multiple shops within those shopping centers) mean these marketplaces are healthy? Not sure about that one either. On the other hand- I know tea shops being contacted by shopping mall agents with enticing proposals to lure them into the slots Teavana is exiting.

Bloated Brick and Mortar

American retail stores are bloated in overall square footage. In 2015 the estimate was 25 square feet of retail space per American vs. 2.5 per European. The result has been vacant retail properties with no new business coming in- the store’s footprint is too big and the rents are too damn high.

Tea Trumping Coffee

Many people want to point out that tea is growing faster than coffee, and that some age groups are drinking the same/more tea than coffee. Maybe so- it depends on what kind of coffee you’re talking about. I haven’t seen the studies that examine the growth of specialty coffee vs specialty tea. American consumers are just waking up to the taste of higher quality espresso drinks and single-origin coffees. Comparing declines in the prolific consumption of drip coffee to the slight rises in loose tea use doesn’t tell enough of the story.

Selling Tea, Or The Cup?

The model has to be right. In the original article 4 years ago, I noticed that the store layout indicated 2 sales models trying to compete in the same space. A consumer can only buy so many novelty teapots and teaware. Teavana mall stores push teaware- this makes developing frequent return customers challenging.

Read this article and some of the comments about this article from the L.A. Times.

– While I appreciate press coverage of the growing place fine teas are taking in the U.S., I squirmed in my seat at how tea (and tea-drinkers) were presented. One passage makes it look like some new hipster obsession that comes after bicycle and vinyl record collecting. Come on!

– The article fails to explain that good tea is good tea. The guys in the article are seeking the 7th heaven of an expensive tea experience. They’re drawing from an extensive collection of teaware and agonizing over choice of waters. Good teas do not have to be high-maintenance. They can also be enjoyed with simplicity.

– Good teas do not need to be so expensive. One of the reader comments below the article remarks at the apparent wastefulness. Some people collect fine, expensive wines. Others collect tea. But good teas can be enjoyed for far less. Considering how many times loose-leaf teas can be re-steeped, the cost per cup can be much lower than you imagine. Even competing with some teabag teas.

– Good teas can also be earth friendly and farmer friendly. With online retail and the work of organizations like the ITFA, it is possible to get teas while cutting out middle-men. And since there is no tea bag and string to recycle, your tea leaves return to directly to the earth as mulch or compost.

– Finally, the descriptions of the teas’ characteristics will scare some people off. How many people want to drink something that mainly tastes like moldy bread? There are so many rich characteristics to tea. Good tea is lower in astringency and bitterness than most of the mainstream teabags. It also invites you to move beyond flavor-chasing to experience rich texture and that sought-after aftertaste. Aftertaste is different from the initial flavor of a tea. It is sensed in the back of the mouth and throat. Once you experience it new doors of delight will be opened onto you.

Don’t let the tea geeks scare you off.

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Walker Tea Review- a tea blog with tea reviews and tea tastings.
Want to see a tea reviewed? Contact me: jason@walkerteareview.com